VICTORIA, B.C. – Manufacturer Vecima Networks Inc. reported higher revenue and higher sales in its financial report Tuesday for the fiscal year ending June 30, 2007.
The company, a “Last Mile Solution provider” for broadband wired and wireless networks, was making its second annual report as a public company.
According to the company’s press release, total revenue for the 2007 fiscal year was $93.7 million, an increase of 17% from total revenue of $80.0 million for the fiscal year ended June 30, 2006. All dollar amounts are in Canadian dollars.
Sales in the three months ended June 30, 2007 were $26.3 million, an increase of 20% over revenue of $21.9 million in the same quarter a year earlier.
The company said increased productivity and economies of scale allowed it to increase sales in spite of the 430 basis point appreciation in the value of the Canadian dollar.
Shareholders’ equity increased $33.5 million, or 44%, to $109.9 million at June 30, 2007 as compared to $76.4 million at June 30, 2006 as a result of operating profits and successful completion of acquisitions leading to extraordinary gains.
Net income for the 2007 fiscal year was $25.0 million or $1.10 per share as compared to $10.6 million, or $0.50 per share in the 2006 fiscal year. Excluding the effects of extraordinary items, net income was $9.5 million for the 2007 fiscal year, it said.
Vecima continue to invest in total research and development with expenditures increasing by 54% in the year ended June 30, 2007 to $12.5 million from $8.1 million in the previous fiscal year.
Vecima ended the 2007 fiscal year with 790 employees, representing a 33% increase from the 593 personnel at June 30, 2006.
Operating expenses increased from 22% of sales in the 2006 fiscal year to 27% in the current fiscal year. These increases in operating expenditures resulted from strategic plans to increase Vecima’s products, markets and managerial capacity, it said, adding it expects operating expenses to trend downward as a percentage of sales in future years as the strategic plans deliver increased sales.
